Treasury’s New Hydrogen Tax Credit Regs Open Door to NatGas Producers
The U.S. Treasury Department and IRS released final rules Jan. 3 for a hydrogen production tax credit that enables producers to use electricity from various sources, including natural gas with carbon capture.
Hydrogen made from renewable natural gas (RNG) and coal mine methane are also eligible for the 45V credit, Treasury said. The rules additionally provide more leeway for the use of nuclear power to produce hydrogen.